British International Investment allocates $75 million to boost Pakistan’s agribusiness sector

British International Investment (BII), the development finance institution of the UK, in collaboration with Pakistan’s Habib Bank Limited (HBL), has launched a $75 million financing facility aimed at bolstering Pakistan’s agricultural sector. This strategic partnership was formalized with an agreement signed on March 10 by Maya Inayat Ismail, Chair of HBL Microfinance Bank and the HBL Sustainability Committee, and Maria Smith, Chief Impact Officer at BII, with high-ranking officials from both entities in attendance.

The initiative is designed to enhance the economic stability of farmers and agribusinesses in Pakistan by facilitating broader access to vital financial resources and promoting climate resilience. The agricultural sector, a cornerstone of Pakistan’s economy, contributes 24 percent to the nation’s GDP and employs 37 percent of its workforce. This funding is set to benefit primarily smallholder farmers, including those in the dairy and poultry sectors, who face significant challenges in securing financial support.

HBL intends to allocate 50 percent of the newly acquired funds to smallholder farmers, who represent over 90 percent of the farming community in Pakistan. The focus will extend across the agricultural value chain, from production to logistics, thereby fortifying the sector’s infrastructure and ensuring sustained growth and stability.

Moreover, the financing will support climate adaptation efforts, such as the introduction of solar-powered irrigation systems, aimed at reducing emissions and enhancing the farmers’ resilience against environmental challenges.

This collaboration between BII and HBL is expected to not only improve productivity and integrate farmers and agribusinesses into global value chains and markets but also increase their capacity to withstand climate-related adversities, thereby reinforcing food security in Pakistan.

Jane Marriott CMG OBE, British High Commissioner, emphasized the critical role of agriculture in Pakistan’s economic growth and food security. She highlighted the UK’s commitment to removing financial obstacles to investing in sustainable farming practices, thus supporting a vital sector of the economy.

Habib Yousuf, Regional Director for South Asia at BII, expressed pride in the partnership’s potential to enhance the resilience and productivity of Pakistan’s agriculture sector. By expanding access to necessary finance and encouraging climate adaptation measures, the initiative addresses pivotal challenges within the sector, aiming for sustainable growth and improved livelihoods.

Maya Inayat Ismail, Chairperson of the HBL Sustainability Forum, noted that sustainability is a fundamental principle at HBL, integrated across all operations. “Through climate-smart financing and yield insurance programs, we are assisting farmers in mitigating the impacts of climate change, ensuring financial security and fostering long-term resilience,” she stated. This partnership with BII is poised to amplify these efforts, driving sustainable impacts where they are most needed.